Licensing Agreement for Manufacturing, Marketing and Distribution through the Pepsi/Lipton Tea Partnership Leverages Industry-Leading Capabilities

Starbucks Coffee Company (NASDAQ: SBUX), PepsiCo, Inc. (NYSE: PEP) and Unilever (NYSE: UN) (NYSE: UL) today announced a licensing agreement for the manufacturing, marketing and distribution of Starbucks super-premium Tazo^® Tea ready-to-drink (RTD) beverages – including iced teas, juiced teas and herbal infusions – in the U.S. and Canada. The agreement leverages each company’s world-class capabilities with the aim of igniting further growth in the RTD tea category.

Tazo’s RTD line will be integrated into the Pepsi/Lipton Tea Partnership (PLP), expanding the joint venture between PepsiCo and Unilever. Established in 1991, the PLP is the leading distributor of RTD tea products in the U.S.

“By joining forces with the Pepsi/Lipton Tea Partnership, we’re tapping into a long history of innovation and expertise in the manufacturing, marketing and distribution of refreshment beverages,” said Gerry Lopez, president, Global Consumer Products, Foodservice & Seattle’s Best Coffee. “This move puts us in a prime position to take our successful Tazo bottled tea business to an even higher level.”

Starbucks relationship with PepsiCo dates back to 1994, when the two companies formed the North American Coffee Partnership (NACP), a joint venture that helped build the RTD coffee category in the U.S. through the development and distribution of Starbucks bottled Frappuccino^®, Doubleshot^® espresso, Doubleshot Energy + Coffee and other beverages.

“Unilever and Starbucks have both been great partners of PepsiCo for over a decade, so culturally it’s a great fit,” said Mary Barnard, GM/VP, Pepsi/Lipton Tea Partnership. “By engaging the passionate base of Tazo consumers already established by Starbucks, leveraging the strength of the Pepsi bottling system and employing the beverage expertise of the Pepsi/Lipton Tea Partnership, we’ll be able to share Tazo RTD products with a larger audience than ever before.”

“As the leading marketer of tea beverages in the world, we’re always looking for opportunities to bring our global expertise to more tea lovers,” said James Wong, Vice President, Business Development, Unilever Americas.